Degrees Not Debt Act of 2024

Section 401(b)(7)(C) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(C)) is amended—

(1) in clause (i)(I), by striking clause (iv)(II) and inserting clause (v)(II);

(2) in clause (ii)(I), by striking clause (iv)(II) and inserting clause (v)(II);

(3) in clause (iii)—

(A) in the header, by inserting through award year 2023–2024 before the period; and

(B) by inserting through award year 2023–2024 after subsequent award year;

(4) by redesignating clause (iv) as clause (v); and

(5) by inserting after clause (iii) the following:

For award year 2024–2025, the amount determined under this subparagraph for purposes of subparagraph (B)(iii) shall be equal to—

(I) $14,800; reduced by

(II) the maximum Federal Pell Grant for which a student was eligible for the preceding award year, as specified in the last enacted appropriation Act applicable to that year; and

(III) rounded to the nearest $5.

Section 401(b)(5)(A) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(5)(A)), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260) and section 102(b)(1)(A) of the FAFSA Simplification Act Technical Corrections Act (division R of Public Law 117–103), is amended to read as follows:

For award years 2024–2025 and 2025–2026, the total maximum Federal Pell Grant award per student shall be equal to $14,800, reduced by the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year.

For award year 2026–2027, and each subsequent award year, the total maximum Federal Pell Grant award per student shall be equal to the amount that is equal to $14,800, increased by a percentage equal to the annual adjustment percentage for the award year for which the amount under this subparagraph is being determined, then reduced by the amount specified as the maximum Federal Pell Grant in the last enacted appropriation Act applicable to that award year.

Section 401(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)(2)), as amended by section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260), is amended—

(A) in subparagraph (E), by striking and after the semicolon;

(B) in subparagraph (F), by striking the period and inserting; and; and

(C) by adding at the end the following:

(G) the term annual adjustment percentage as applied to an award year, is equal to the estimated percentage change in the Consumer Price Index (as determined by the Secretary, using the definition in section 478(f)) for the most recent calendar year ending prior to the beginning of that award year.

The amendments made by this subsection shall take effect as if included in section 703 of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260) and in accordance with section 701(b) of such Act, as amended by section 102(a) of the FAFSA Simplification Act Technical Corrections Act (division R of Public Law 117–103) (including the authorization provided under section 102(c)(1)(A) of such Act).